How to open a corner shop

Corner shop are popular because they are convenient.

They are important in local communities, providing a one-stop shop to buy food, drinks, newspapers, magazines, and alcohol.

They might also offer services like ATMs, lottery tickets, and parcel collections.

The corner shop market has been growing well recently, and it’s expected to be worth over £50 billion by 2026.

This makes it a potentially profitable business opportunity.

Owning a corner shop means being your own boss and offering something useful to your community.

Keep reading to learn how to open a corner shop.

How to start a corner shop

If you're interested in opening your own corner shop or convenience store, here are a few tips that could be useful.

Conduct market research

Conducting market research can be an important first step when you’re planning to open a local business.

This typically involves collecting information about your target market and potential customers to assess whether there is a demand for your business in the area.

Your findings could help you make decisions such as:

• which products and services to offer
• where your corner shop should be located
• the prices for your goods
• your opening hours.

There are many ways to conduct market research – read about the market research techniques you might consider.

By researching early on, you could avoid expensive mistakes and improve your chances of success.

Read our complete guide on how to conduct market research.

Find the right location

Your market research might give you some insights into the best location for your corner shop.

Ideally, your shop should be located somewhere with high footfall, such as in a busy office area, shopping district, or residential area.

Other factors you may wish to consider when looking for the right location include the level of competition in the area and how accessible the shop would be to local people.

You might also consider the average rent costs for businesses in the area, and local council regulations.

Create a business plan

A business plan may help you make your corner shop successful.

It’s a written document that outlines your main business goals and how you plan to reach them over time.

It could include details about your target customers, market research, sales and marketing strategies, and how you’ll run your business.

You also need to include financial plans, like cash flow forecasts, and possible funding sources.

You can download our free business plan template to get started.

Consider start-up costs

To earn money from a corner shop, you may need to spend money first.

Start-up costs are the costs required to get your business off the ground.

These include costs for the location (rent or purchase), marketing, stock, and any equipment you might need.

Ongoing costs may include staff wages, insurance, utilities, payment systems, security, and new stock.

At this point, you may want to consider what funding you already have available.

Work with suppliers

To stock your corner shop, it’s important to find the right suppliers.

Look for reliable suppliers who offer quality products.

It’s also good to have a variety of products to choose from.

You could look at customer reviews online, request samples to assess product quality, and check for any relevant certifications.

Building strong relationships and communicating well with your suppliers could lead to better service and more flexibility.

Negotiating prices, terms, and delivery schedules upfront is a good idea to avoid misunderstandings later.

Think about inventory management, too.

Working with several suppliers could reduce risks and help keep your shop stocked.

You might want to use supply chain management software to track orders and reduce waste.

Doing the right market research ensures your suppliers provide the right seasonal products at the right times, keeping your shop well-stocked.

Arrange licences and legal requirements

If you’re opening a business that sells food, alcohol, or tobacco, you’ll need the right licences to operate legally.

To sell alcohol regularly in your corner shop, you’ll need a premises licence and a personal licence to sell alcohol.

If you plan on selling tobacco products, such as cigarettes, you will also need to register with the UK ID issuer in advance.

As you would be selling food items, you must register your corner shop with your local council’s health department at least 28 days before opening.

Corner shops are classified as A1 retail premises, so you must ensure your property has the correct planning permission.

If needed, you can request a change from your local authority.

Set up the business

When starting a business in the UK, there are some legal steps you need to follow.

First, you must register your business with HMRC for tax purposes, no matter what type of business structure you choose.

If you choose a limited company business structure, you also need to register with Companies House.

To do this, you will need a name for your business – read our guide to choosing a brand name for your company.

You may also need to register for VAT.

Managing your finances carefully from the start is crucial for your corner shop’s success.

More successful corner shops understand their customers’ needs and monitor their stock levels to avoid overstocking.

You will also need to have a separate business bank account if you have a limited company business structure.

Many sole traders also choose to have a separate account to keep their business and personal finances organised.

It might be helpful to work with a financial consultant or accountant to keep your business financially healthy.

Read our guide to small business bookkeeping tips for success.

Decide on shop layout and equipment

The size of your space will influence how you set up your corner shop.

You’ll need to consider the equipment you might need.

This could include:

• a point of sale (POS) system
• a security system including CCTV or an alarm
• lighting to boost product visibility
• a checkout counter
• shelving units and other storage solutions
• signage
• shopping baskets.

The placement of larger appliances like freezers and fridges might depend on where your electrical sockets are.

Try putting similar products together on the same shelves for a customer-friendly layout.

Place your most popular items further from the entrance to encourage customers to explore and buy more.

Consider accessibility, too, such as creating wide aisles and lower-level cash counters to help customers with mobility issues.

Keep your shop welcoming by regularly tidying shelves, sweeping the floor, and organising stock deliveries.

Hire and manage staff

Hiring staff can be an exciting step for your start-up.

To determine if you need more help, look at your daily tasks, customer service needs, and busy times to see when extra staff might be necessary.

You could also watch sales patterns and foot traffic to decide when to hire more employees.

Read about how to decide when it’s the right time for your small business to hire staff.

When you start hiring, think about protecting yourself as a business owner.

Consider the qualities you want in your employees. 

Look for people who are friendly, reliable, responsible, and have great people skills to assist customers.

As an employer, you have legal responsibilities towards your staff including for their physical and mental wellbeing in the workplace, and must pay them National Living Wage if they are 21 or over, otherwise it's at least minimum wage. 

The National Living Wage will be £12.21 from April 2025. 

It’s a good idea to check the correct rate, as it changes every April.

Read our first-time employer’s guide to hiring staff.

Market your business and attract customers

Marketing your corner shop helps inform the local community that you can meet their needs.

Simple strategies could help you build a community presence and strengthen customer relationships.

You may not need a large marketing budget to make an impact – consider ideas such as:

• building a social media presence and posting regularly
• simple flyers for the local area
• local advertising
• implementing loyalty programmes
• setting up a website
• partnering with other local businesses to offer discounted referrals.

Find out more with our guide to marketing on a shoestring budget.

You could also consider placing ads in local media and doing paid social media to expand your reach.

Other ways to attract customers might include offering value-added services such as home delivery services or a click-and-collect option for shoppers.

Fund your corner shop

There are several funding options you might consider when deciding on how to fund your corner shop.

You could apply for a bank loan, seek a government grant, or use your own personal savings.

You might consider a Start Up Loan, which is a government-backed personal loan that’s available for people looking to start or grow a business.

You could get up to £25,000 at a fixed 6% interest rate.

As corner shops are typically local businesses that serve a community, you might also look into crowdfunding as a potential option.

Not every type of funding is suitable for a corner shop, so consider thoroughly researching your options before starting an application process.

It’s a good idea to seek independent specialist financial advice when deciding if a particular financial product is a good fit for you and your business.